- HashKey’s Xiao Feng says Trump’s crypto-friendly policies could push China to re-enter the digital asset market.
- Trump appoints Elon Musk and Vivek Ramaswamy to lead a new tech-focused government department, signaling a pro-crypto stance.
Recently, HashKey Group Chairman Xiao Feng created ripples in the digital asset sector by speculating that Trump administration measures endorsing cryptocurrency would inspire China to reactivate its digital asset market within two years.
Feng pointed out that Western sanctions—particularly the isolation of Russia from the SWIFT payment system in 2022—may also force China toward quickening its stance on crypto
Feng claims that the latest Trump initiatives show a proactive and forceful sentiment toward advancing the crypto sector in the United States; thus, China could have to rethink its stance and start reentering the digital asset market.
NEW: Hashkey Group CEO Xiao Feng suggests that Trump’s pro-crypto 🇺🇸 US administration could push 🇨🇳 China to consider easing restrictions on #Bitcoin and digital assets. #Crypto #Bitcoin #China pic.twitter.com/3tCqo9Geuz
— Catch The Latest (@CatchTheLatest) November 14, 2024
China’s Crypto Stance Faces Global Pressure Amid U.S. Policy Shift
The possible change in China’s stance coincides with notable global interest in crypto following the electoral triumph of Trump. Trump’s comeback to power and the acceptance of blockchain and crypto technologies by his government have set people debating China’s reaction.
China banned trading and mining crypto strictly in 2021, but Feng thinks these U.S. policies might set off a chain reaction that causes China to change its austere stance.
China’s previous prohibition on crypto mostly aimed at decentralized finance and speculative trading, but Trump’s strategic drive could force China to investigate reopening areas of its digital asset market in order to stay competitive in the world financial space.
Focusing mostly on centralizing control over financial markets, China has always kept rigorous supervision of financial technologies and digital assets. Still, new Western policies are progressively driving digital money and blockchain use ahead.
Feng said China may suffer competitively if it keeps ignoring or suppressing the growing sector while additional nations include cryptocurrency into their banking systems.
China runs the danger of missing out on technological developments and economic possibilities by avoiding the digital money industry, particularly in sectors like distributed finance and blockchain infrastructure where Western influence is fast growing.
Strategic Moves in Asia’s Financial Landscape Amid Policy Shifts
Trump’s deliberate timing of his crypto policies has sparked conjecture on China’s future action in this changing financial environment. A major center for the Asian crypto industry, Hong Kong might be very important as a gateway should China relax its prohibitions.
As Feng pointed out, Hong Kong’s crypto-friendly laws might give China a stage to carefully re-enter the digital currency industry under control over financial operations inside its boundaries. China might gently engage in worldwide digital finance by using Hong Kong’s special position in the crypto market, therefore avoiding direct lifting of its ban.
On the other hand, CNF recently reported a significant action taken by Trump in another sphere: he tapped Elon Musk and Vivek Ramaswamy to oversee the recently formed Department of Government Efficiency (D.O.G.E.), with the job scheduled to run until July 2026.